RadioShack DIP loan, bid procedures hearing pushed again to Feb. 27

By Kali Hays

New York, Feb. 25 – RadioShack Corp.’s hearing to approve bidding procedures and its proposed $285.33 million of debtor-in-possession financing has been moved to Feb. 27 from Feb. 25, according to a Wednesday notice with the U.S. Bankruptcy Court for the District of Delaware.

This is the second rescheduling of the hearing.

As previously reported, RadioShack entered into an asset purchase agreement with General Wireless, Inc., an affiliate of Standard General LP, for the sale of between 1,500 and 2,400 of its company-owned stores in the United States.

The proposed DIP financing includes a rollup of the company’s prepetition revolver, letters of credit and FILO facility and will also provide up to $20 million of incremental borrowing capacity.

Interest on the facility will be Libor plus 650 basis points with a 1% Libor floor.

The maturity date of the loan will be the earlier of one year after the entry of a final order approving the DIP financing and the effective date of a Chapter 11 plan.

Milestones in the credit agreement include RadioShack obtaining approval of bid procedures for a going concern/liquidation sale of its assets within two weeks of the petition date, a related sale being approved within 45 days of the petition date and a close of the sale within 10 days of a sale approval order.

Cantor Fitzgerald Securities is the administrative and collateral agent.

RadioShack is a Fort Worth, Texas technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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